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CABLE ON THE VERGE OF 1.3000! WILL IT SOAR OR CRASH?
Hold onto your hats, folks! The GBP/USD is rocking and rolling, hitting a jaw-dropping four-month high and eyeing that tantalizing 1.3000 milestone! What a wild ride it’s been! Early movements hinted at a breakout, but it seems some modest selling pressure swooped in to keep our beloved cable just shy of that magic number.
DOLLAR DOMINANCE IN FREEFALL!
What’s sending the greenback into a tailspin? Oh, just a little thing called US Dollar weakness! In recent weeks, it’s like watching a slow-motion trainwreck as recession fears and weak data have market players racing away to other safe haven assets. The dollar crumbled against EVERYONE in the G10, except the yen. Hold the phone! Is the dollar officially a disaster area?
In a shocking turn of events, February retail sales rose a measly 0.2% when everyone was expecting a robust 0.6%, following a disastrous drop the month before. But wait, the Empire Manufacturing Index took a nosedive to levels unseen in over a YEAR. Talk about a catastrophe for the dollar!
CENTRAL BANK CHAOS LOOMING OVER MARKETS!
This week is CRUCIAL, darling! The spotlight is on the Federal Reserve and Bank of England (BoE) as they prepare for their meetings. Will they pause the cable rally? The plotting and scheming begins, as the BoE is rumoured to keep interest rates unchanged after that shocking 25 basis point cut in February. With uncertainty swirling around US trade policies that could rock the global economy, it’s a nail-biter for investors.
TAROT READING: MORE CUTS OR STABLE SCENARIOS?
What does the crystal ball say? The BoE could ease pressures for swift rate cuts, which would give GBP/USD a little cushion to bounce on. But don’t hold your breath! Governor Andrew Bailey might just be playing it safe, hinting at a slow and steady approach instead of an all-out free-for-all.
As the US data continues to haunt the dollar, betting on a slew of rate cuts at the Fed’s meeting could keep the torch burning for cable. But hold your horses—will inflation be the Achilles’ heel for the Fed, especially with universal tariffs looming in April? We might just see them keep a tight grip on current policies!
TECHNICAL THRILLS: GBP/USD ON FIRE!
Since that explosive trendline break on February 11, GBP/USD has shot up an astonishing 660 pips! Now trading around 1.3000, it’s a wild bull party! But a daily close above this critical handle is THE key if bulls want to keep their iron grip.
What’s next? If the bulls triumph, we might face some resistance at 1.3140 and 1.3210. But if the 1.3000 barrier holds strong and experiences a nasty rejection, brace yourselves! Support levels could plummet back to 1.2864, with the 200-day moving average at 1.2797 waiting to catch any falls.
So, gear up, traders! The GBP/USD saga continues, and it’s anyone’s game at this point! Will cable soar or sink? The tension is palpable, and the stakes are high!
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